Record £24.2bn Capital Gains Tax Haul: Are You Affected?

Tax Queen

Tax Expert @ Pie

3 min read

HMRC collected a record £24.2 billion in capital gains tax in the 2024-25 tax year, up 89% on the year before, as 181,000 more people, mostly landlords, investors, and business owners across the UK, were pulled into paying it. The rise follows CGT rate increases introduced from October 2024.

What This Means For You

If you sold a property, shares, or another asset for a profit, there's a good chance you paid more capital gains tax than you would have a couple of years ago, and you're not alone. New figures from HMRC show the Government collected a record £24.2 billion in capital gains tax in the 2024-25 tax year, an 89% jump on the year before. An extra 181,000people were brought into the CGT net, taking the total number of capital gains taxpayers to an all-time high of 584,000.

The data confirms what many landlords, investors, and small business owners suspected: rate rises and shrinking allowances mean far more people now owe something when they sell an asset. If you run a limited company alongside your other income, it's also worth keeping an eye on our coverage of recent corporation tax reporting changes, since business disposals often touch both taxes.

Why The Bill Has Gone Up

Capital gains tax (CGT) is charged on the profit you make when you sell or dispose of something that's gone up in value, such as a rental property, a business, or an investment. It's separate from income tax and reported through your self assessment. If you hold shares or funds, our guide on dividend reporting requirements is worth a read too, since investment income and gains often need reporting together.

The jump comes down to two changes. First, the main rates of CGT rose from 10% to 18% for basic-rate taxpayers, and from 20% to 24% for higher-rate taxpayers, on disposals made after October 2024. Second, the tax-free annual exemption has been cut sharply in recent years, so gains that once fell under the radar are now taxable.

Sean Cockburn of Forvis Mazars put it plainly: cuts to the exemption have widened the net at the same time as rate rises, while landlords, investors, and business owners have been accelerating disposals, some by choice, some out of necessity. We've covered this trend before in our piece on why more entrepreneurs are accelerating exits ahead of capital gains tax changes.

What To Do If You Sold An Asset This Year

If you've disposed of a property, shares, crypto, or part of a business recently, the practical takeaway is simple: don't assume last year's rates or allowances still apply. Work out whether you're a basic or higher-rate taxpayer for the year of the disposal, since that determines whether you're on the 18% or 24% rate, and check the current annual exempt amount before you calculate what you owe, or see how Pie Tax works if you'd rather it was done for you.

With CGT remaining firmly on the Treasury's radar ahead of the Autumn Budget, further changes are possible, so it's worth reviewing your position sooner rather than later if you're planning a disposal.

This is exactly the kind of change that's easy to miss if you're managing things manually. Pie Tax, self-assessment software built for sole traders, freelancers, landlords, and the self-employed, keeps your figures organised and flags what you owe as rates and allowances shift. If you want more on how digital tools are handling this shift, see our earlier piece on tax software and mid-year capital gains reporting.

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If you'd rather not work out your CGT position by hand, sign up to Pie Tax for free today and keep your self assessment accurate, whatever the Autumn Budget brings.

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